Hi, my wife and I are both 72 (73 early next year) and have super balances of $160,000 and $250,000 respectively. 

We pay ourselves $1000 a fortnight each from these accounts. In addition, we each receive $881 a fortnight from Centrelink. We own our house, a car and a caravan. We have no investments or savings other than our super.

My wife’s mother is 98 and in good health. She owns and lives in her own house, which was recently valued  $1.3 million. When she eventually passes away, this property will be sold and the proceeds divided equally between my wife and her two siblings.

Assuming this doesn’t happen before we turn 75, what is likely to be the best way to invest my wife’s share and what impact would this have on her (our) Centrelink payments?

In relation to the age pension, you are receiving close to the maximum amount. It looks like you only lose a few dollars each fortnight as you are just over the assets test.

For every extra $1000 you now get in assets, you will lose $1.50 each a fortnight in age pension.

For example, let’s say, after costs, your wife received $400,000.

You and your wife’s age pension would then be reduced by $600 a fortnight ($400,000/$1000 x $1.50).

As a couple homeowner, you can still have $1.085 million in assets (excluding your home) and still........

© The New Daily